Deutsche Bank (DB.US) will buy non-performing loan assets from Abu Dhabi First Bank.

Media reports citing informed sources revealed that European banking giant Deutsche Bank Aktiengesellschaft (DB.US) will acquire a portfolio of non-performing loans worth approximately $800 million from the largest bank in the United Arab Emirates. This is a rare large-scale non-performing debt transaction in the wealthy Gulf region. According to the sources, the German commercial bank offered a higher bid than other international market bidders, including American hedge funds, in the competition to purchase the non-performing loan asset portfolio of Abu Dhabi First Bank. Since the information has not been made public yet, these sources requested to remain anonymous. It is currently unknown how much Deutsche Bank Aktiengesellschaft will pay for these loan accounts. After the media disclosed this news, Deutsche Bank Aktiengesellschaft declined to comment, while Abu Dhabi First Bank did not immediately respond. Large commercial banks often sell non-performing loans with various issues to free up resources and support their balance sheets. In recent years, Abu Dhabi First Bank has been the second large commercial bank in the United Arab Emirates to sell and transfer a large amount of non-performing loan assets. One of its competitors, Abu Dhabi Commercial Bank PJSC, sold non-performing debts worth up to $1.1 billion to Davidson Kempner in 2023, which was considered a milestone non-performing loan transaction paving the way for similar commercial bank transactions in the region. In recent years, Deutsche Bank has been expanding its business in the Middle East region, making it a critical part of the bank's emerging market strategy. Deutsche Bank has been recruiting talent across various business lines and appointed a senior banker as the new CEO for the Middle East region last year.